Paying Guest Agreement Format: Rules, Terms, Sample and Legal Rights in India

Finding or providing PG accommodation as a paying guest can be very beneficial, hassle-free, and economical, provided one is aware of the terms and conditions. Often, the tenant or PG occupant gets confused about the payment conditions or rules, while the PG provider worries about misuse. The structure of a PG system, together with an appropriate PG rent agreement, will tackle all these problems. This blog will provide all the information you need on the Paying Guest Agreement Format, including the rights and duties involved, as well as the essential terms of the PG rent agreement. You will even get a sample form that will guide you in starting the process with complete confidence.

Importance of PG Agreement

A well-drafted PG agreement is essential for a hassle-free living experience, protecting both guests and landlords while clearly defining terms, responsibilities, and rules. Here are the key reasons why it matters:

• Legal Protection: Clearly defines the rights and responsibilities of both the guest and the landlord.
• Prevents Disputes: Minimizes misunderstandings regarding rent, deposit, amenities, and house rules.
• Transparency: Specifies rent amount, payment schedule, duration of stay, and refund policies.
• Proof of Stay: Acts as official documentation for identity verification and police records if required.
• Property Safety: Ensures guests take responsibility for any damage to the landlord’s property.
• Peace of Mind: Provides security for both parties, ensuring a smooth, stress-free PG experience.
• Compliance: Supports legal and municipal requirements for operating and staying in a PG accommodation.

Checklist Before Choosing a PG and Signing a Rent Agreement

Choosing the right PG and signing a clear rent agreement is crucial for a comfortable, secure stay. To make an informed decision, here’s a handy checklist to follow before finalizing:

• Verify PG Legitimacy: Ensure the PG is legally registered and has the necessary permissions.
• Inspect Facilities: Check the condition of rooms, furniture, kitchen, bathrooms, and common areas.
• Safety Measures: Confirm fire safety, CCTV, secure locks, and proper lighting.
• Understand House Rules: Ask about curfew, visitors, noise policies, and cleanliness expectations.
• Check Rent & Deposit: Clarify rent amount, deposit, utility charges, and payment schedule.
• Read the Agreement Thoroughly: Review terms, duration, exit clauses, and refund policies.
• Meet Existing Residents: Get feedback on living experience and management behavior.
• Location & Connectivity: Ensure proximity to workplace, college, markets, and transport.
• Food & Amenities: Confirm meal options, laundry, Wi-Fi, and other facilities provided.
• Legal Documentation: Keep ID proof, the PG agreement, and the landlord's contact information handy.

Sample of Paying Guest Agreement

The following information must be included in the paying guest rent agreement:

• Names of those who are involved
• Description of the assigned space
• Tenant and owner behaviour expectations
• Deposit sum
• Regular rent

You can customise, add further information, and remove or add new clauses to the sample pg rent agreement. Once the terms of the agreement are acceptable to you, you can publish it on stamp paper and have everyone sign the deed. Most PG owners will need a security deposit for up to six months. Usually, they do this to avoid having to look for new renters in the middle of the process. Therefore, it’s crucial to enquire about these terms of service:

• Will I receive a refund of my security deposit if I plan to quit the PG mid-stay?
• After the lease period, will the overall security deposit be returned?
• How is the cost of losses determined, and how is the inventory of eligible damages determined?

After selecting the PG agreement form, complete it with the listed information. You can tweak, add more information, or remove or add more clauses if you want. Once you are satisfied with the agreement, reproduce it on stamp paper, pay the stamp duty for the guest agreement, and have all parties sign the deed. Additionally, two witness signatures are required.

Important Terms, Rules, and Regulations for Paying Guests

• Curfew and Restrictions on When to Use Amenities: Ensure to discuss curfew timings and amenity usage guidelines with the owner, especially if you have irregular schedules or specific requirements, like access to non-vegetarian food and communal facilities.
• Guests’ Rights: Clarify guests' rights with the owner, covering topics such as visitor policies, arrangements for parents' visits, hours for friends' visits, and guest dining arrangements, to avoid any misunderstandings or dissatisfaction.
• Cleaning Routine: Demand regular housekeeping services. Although most PGs are eager to do this, you will ultimately be the one who lives in the room. Therefore, be sure to receive assistance on that front.
• Various House Rules: Know the house regulations before you enter. They include fixed TV times, no guests, no non-vegetarian cuisine, no drinking or smoking, restrictions on the breakout area, and more. You should probably look for yet another paying guest if it bothers you.

How to Create an Online PG Agreement?

An online PG agreement streamlines paperwork and saves time for both owners and tenants. The following are the basic steps to create a valid and convenient online PG agreement.

• Pick an Online Rental and Legal Agreement Site that works well.
• Please insert the correct information about the PG owner and tenant.
• Make the rent amount, security deposit, and payment terms explicitly clear.
• Explain duration, lock-in period, and renewal terms.
• Paying guest rules and regulations should be clearly defined, covering curfew, visitors, cleanliness, and behavior expectations.
• Add notice period, exit clauses, and penalty terms if applicable.
• Carefully examine all terms before final submission.
• Finalize the e-signing and download the agreement.

Create an Online Paying Guest Agreement

The preference for paying guests among young workers and students is growing. A PG offers them a setting that feels like home so they can thrive while living away from their hometown. When choosing a PG agreement in Mumbai or elsewhere in India, students often neglect the importance of signing a Paying guest housing agreement with the landowner, focusing instead on amenities, food, security, and more.

However, by doing this, they may unknowingly expose themselves to risks, including hefty deposits and landlord disputes. To ensure a secure arrangement, students and young workers need to be aware of the option to create an online paying guest agreement, which provides a legally binding document that safeguards their interests.

Paying Guest Agreement Format 

BETWEEN

___________________________

AND

___________________________

Re: One room in Flat No. _______________________

AGREEMENT made at ________________ this ____________ day of _____________________ 2000 BETWEEN Mr. ___________________ hereinafter referred to as "the Owner" of the One Part AND (i) Mr. ____________________ and (ii) _____________________________ hereinafter referred to as "the Paying Guest" of the Second Part;

WHEREAS the Owner is seized and possessed of and is occupying Flat No.____ on the ______ floor of the building named and known as ___________ situated at ____________________ _____________;

AND WHEREAS the Paying Guest have requested the Owner to allow them use of one bedroom in the flat in the aforesaid premises for their own use only on a temporary basis on the terms and conditions hereinafter written.

NOW THIS AGREEMENT WITNESSETH:

1.      The Owner hereby agrees to permit the Paying Guest to use one bedroom in the aforesaid premises being Flat No._________ in _______________ situated at __________________________________________ together with the use of the attached bathroom, on paying guest basis.

2.      This Paying Guest Agreement shall be for a period of _________________ only commencing from ______________________.

3.      The Paying Guest shall pay an amount of __________________ (Rupees _____________________________________ only) for every quarter (Three months). The charges shall include the use of bathroom, and other incidentals and society charges. The Paying Guest have agreed to pay the entire electricity bill, less an amount of Rs.200/- (Rupees two hundred) per month.

4.      The Paying Guest have paid at the time of execution hereof a security deposit of Rs. ___________ (Rupees ___________________________________ only) which shall remain with the Owner free of interest, until the termination of this agreement, and shall be returned to the Paying Guest, subject to any deduction for payments due hereunder. The Paying Guest shall pay a further sum of Rs. _____________ (Rupees ______________________________ only) as Security Deposit on or before ______________.

5.      The Owner may allot to the Paying Guest any of the bedrooms in the said flat for the use of the Paying Guest and the Owner may change the allocation at any time during the pendency of the Agreement.

6.      The Paying Guest hereby specifically confirm and agree that they have no right whatsoever to the said premises nor shall claim to be tenant/sub-tenant or licensees nor shall claim any other right whatsoever in or to the said premises.

7.      It is clearly agreed and understood that the Paying Guest have not been given any key to the entrance door of the flat nor even to the room that is allocated to them for their temporary use from time to time.

8.      They Paying Guest may use the passages in the flat for access to the room and may use the kitchen for cooking their own food only provided that no disturbance whatsoever is caused to the use of the kitchen and passages and other portions of the flat by the Owner and his servants and others.

9.      The Paying Guest shall not cause any disturbance at any time and may permit guests or any outsider to enter the flat only with the permission of the Owner.

10.   In the event that the Paying Guest misuse any of the facilities in the flat or causes any disturbance or delays in making payment of the Paying Guest charges, this Agreement shall stand terminated forthwith and it is hereby specifically agreed and confirmed that the Owner shall be entitled to enter the room allocated to the Paying Guest for the time being and to remove all the belongings of the Paying Guest and dispose of them.

11.   This Agreement shall stand terminated immediately upon the expiry of the period mentioned hereinabove.

12.   The Paying Guest shall be responsible for any damage caused by them or by any other outsider who has entered the flat through them to the said flat and to any of the furniture, fixtures and equipment therein, reasonable wear and tear excepted.

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.

SIGNED AND DELIVERED by the within- )

named MR. _________________________ )

in the presence of )

SIGNED AND DELIVERED by the within- )

named (i) ________________________ )

and (ii)____________________________ )

in the presence of)

-------------------------------------------------------------------------------------------------------------------------

R E C E I P T

Received this day the sum of Rs. _____________ (Rupees ______________________ only) by cheque bearing No. ____________ and Rs. ______________ (Rupees _________________________________________ only) by Cheque bearing No. _______________dated _____________ both drawn on _________________ Bank ___________________ Branch from Mr. ________________________ and Mrs._____________________________, the Paying Guests towards security deposit.

WE SAY RECEIVED

Mr. ___________________________

The above sample paying guest rules and regulations pdf, but it can always be negotiated and put forward by the landowner in the sample pg rent agreement. 

Cost of a Paying Guest Agreement & Essential Inventory Checklist

A Paying Guest agreement cost will vary based on location, platform, and registration type, and may include drafting, e-stamping, and legalization. A practical checklist of inventory details prevents disputes by listing the items given to the tenant when moving in.

Essential PG Inventory Checklist:

• Bed, mattress, pillow, and cupboard
• Study table and chair
• Fan, lights, and basic electrical fittings
• Curtains, locks, and keys
• Geyser and bathroom fittings
• Common appliances (fridge, washing machine, microwave)
• Wi-Fi router and power backup
• Clean walls, flooring, and fixtures

PG Rules and Regulations by the Government

Here are some important rules and regulations regarding the paying guest concept to maintain safety, comfort, and a decent lifestyle for all the residents:

• No Smoking/Alcohol: Smoking or alcohol consumption is strictly prohibited on the PG premises.
• Curfew and Visitors: Residents must observe curfew hours. There are no overnight visitors allowed.
• Maintenance: Rooms and areas in general should always be kept clean and well-maintained.
• Payments: Rent, deposits, and bills must be paid on time per the contract.
• Code of Conduct: Residents are expected to display comportment, keep noise levels under control, and respect other people’s privacy.
• Accurate Information: Giving misleading or abbreviated information may result in the cancellation of accommodation.
• Energy Consumption: Switch off lights, fans, ACs, and geysers when not in use.
• Property Damage: Any damage to furniture and fittings will have to be paid for by the resident.
• No Harassment: Ragging, bullying, or any form of harassment would be strictly prohibited.

Termination & Refund Rules for PG Agreements

These rules highlight notice periods, exit conditions, penalties, and refund timelines to help residents and PG owners avoid disputes; the points below summarise the key termination and refund terms:

• Either party must serve a minimum notice period to terminate the agreement.
• Either party must serve a minimum notice period before terminating the agreement.
• Early termination may be subject to penalties or partial forfeiting of the security deposit.
• Security deposits are refunded after any outstanding dues or damage costs are deducted.
• Rent refunds, if required, are made on a pro rata basis.
• Refunds are processed within the timeline mentioned in the PG agreement.

Rights of Paying Guests and Landlords

Understanding the rights of paying guests and landlords helps ensure fair treatment, legal clarity, and a balanced living arrangement; the sections below outline the specific rights applicable to paying guests and PG owners separately:

Rights of Paying Guests

• Right to a written PG agreement clearly stating rent, deposit, and stay conditions.
• Right to safe, hygienic accommodation with access to agreed amenities.
• Right to privacy and freedom from harassment or unfair interference.
• Right to receive the security deposit refund after valid deductions.
• Right to transparent communication on rules, charges, and termination terms.

Rights of Landlords

• Right to receive rent, deposits, and dues on time as per the agreement.
• Right to set and enforce house rules for discipline and safety.
• Right to take action or terminate stay in case of non-payment or violations.
• Right to recover repair or damage costs caused by guest negligence.
• Right to manage the property in compliance with applicable local regulations.

No More PG Disputes: Secure Your Stay with NoBroker Legal Services

An effective PG rent agreement is the foundation of a seamless PG experience. It protects both the tenant and the property owner with respect to key terms, including rent, advance, tenure, facilities, and house rules. One can learn about the terms of a PG agreement by analyzing a template available on rent agreement samples, thus avoiding any potential conflict and having a seamless stay experience in a PG facility. With the help of NoBroker Legal Services, one can now draft an effective PG rent agreement in a matter of minutes, hassle-free.

Frequently Asked Questions?